A new normal: are the wild days of Hong Kong’s housing market a thing of the past?
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Analysts expect Hong Kong's housing market to settle into a new normal with stable prices. The government's removal of property market restrictions has led to increased buying activity, but experts believe it is driven by pent-up demand and not indicative of future trends. Limited supply and high interest rates are expected to prevent a significant rise in prices. The market saw a surge in transaction volumes, but prices have not increased. There are currently over 20,000 unsold units in the market, and around 22,270 private homes are forecast to be completed this year. Experts estimate that it will take at least four years to absorb the current inventory. Developers are offering large discounts to attract buyers, indicating caution about the market outlook. The removal of stamp duties has led to an increase in mainland Chinese buyers, but the government can reintroduce stamp duties to control excessive demand. Short-term speculative investors are expected to decrease due to limited potential for significant price increases. Overall, experts believe the property market will see stable growth in the future.
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